Charlotte, North Carolina, January 23, 2026
Pacific Life Insurance Company is aiming to dismiss an $8.5 million lawsuit by NASCAR champion Kyle Busch and his wife. The Buschs allege misrepresentation regarding five Indexed Universal Life (IUL) insurance policies they purchased from 2018 to 2022. They believe misleading information led to a loss of $10.4 million due to undisclosed risks. Pacific Life argues the couple failed to maintain their policies and acknowledges their understanding of the agreements signed. The case is currently under review in North Carolina.
Pacific Life Seeks Dismissal of Busch’s $8.5 Million Lawsuit
Charlotte, North Carolina – Pacific Life Insurance Company has initiated a motion to dismiss the $8.5 million lawsuit filed by NASCAR champion Kyle Busch and his wife. The lawsuit alleges misrepresentation concerning the sale of Indexed Universal Life (IUL) insurance policies.
Details of the Lawsuit
In October 2025, the Buschs claimed in their lawsuit that they were misled into acquiring five IUL policies from 2018 to 2022. They believed these policies would yield tax-free retirement income, resulting in a reported loss of $10.4 million due to undisclosed risks tied to the policies.
Pacific Life’s Response
In its motion to dismiss, filed in the Western District of North Carolina, Pacific Life argues that the Buschs did not appropriately maintain the insurance policies by failing to pay premiums, which led to policy lapses and premature surrenders. The company insists that the Buschs acknowledged their understanding of the policies by signing multiple documents, which included agreements to pay planned premiums and retain the policies for at least 30 years.
Understanding IUL Policies
Indexed Universal Life (IUL) policies combine life insurance with a cash value component. The cash value growth of these policies is tied to a stock market index while featuring built-in protections against market downturns. Pacific Life asserts that the policies were well-documented, clearly labeled, and offered a cancellation window of 20 days with refund options for premiums paid.
Allegations Against Insurance Agent
The lawsuit also names insurance agent Rodney A. Smith, who is accused of directing the Buschs toward high-risk products while collecting substantial commissions without adequate disclosure.
Current Legal Status
This case is presently under review in the Western District of North Carolina, with Pacific Life’s motion to dismiss awaiting the court’s decision.
Implications for Entrepreneurs and the Local Economy
This lawsuit not only highlights potential pitfalls in financial agreements but also underscores the importance of informed decision-making in personal finance, especially for those in public-facing roles like athletes. As Jacksonville entrepreneurs strive to innovate and grow, the lessons that emerge from such high-profile situations can resonate throughout the community. Understanding insurance products, potential risks, and the fine print is crucial for safeguarding personal and business investments.
Supporting Local Businesses
As the case unfolds, community members and local businesses can reflect on their own practices and partnerships. Encouraging transparency and education will foster a more resilient economic environment, benefiting all sectors, particularly entrepreneurs navigating the complexities of growth in Jacksonville.
Frequently Asked Questions
- What is the nature of the lawsuit filed by Kyle Busch and his wife?
- The Buschs filed a lawsuit alleging they were misled into purchasing five Indexed Universal Life (IUL) insurance policies between 2018 and 2022, under the belief that these policies would provide tax-free retirement income, resulting in a claimed loss of $10.4 million.
- What is Pacific Life’s response to the lawsuit?
- Pacific Life has filed a motion to dismiss the lawsuit, arguing that the Buschs failed to maintain the policies by not paying premiums, allowing some to lapse, and surrendering others prematurely. The company asserts that the Buschs signed multiple documents acknowledging their understanding of the policies, including a commitment to pay planned premiums and hold the policies for 30 years or more.
- What are Indexed Universal Life (IUL) policies?
- IUL policies are a type of life insurance that offers a death benefit along with a cash value component. The cash value growth is linked to a stock market index, with built-in protections against market downturns.
- Who is Rodney A. Smith, and what role does he play in this case?
- Rodney A. Smith is the insurance agent named in the lawsuit. The Buschs accuse him of steering them into high-risk products while receiving a substantial commission without full disclosure.
- Where is the lawsuit being heard?
- The case is ongoing in the Western District of North Carolina. Pacific Life’s motion to dismiss is currently under consideration by the court.
| Key Feature | Description |
|---|---|
| Nature of Lawsuit | The Buschs allege misrepresentation in the sale of five IUL insurance policies between 2018 and 2022, claiming a loss of $10.4 million. |
| Pacific Life’s Response | Pacific Life seeks dismissal, stating the Buschs failed to maintain policies and signed documents acknowledging understanding of terms. |
| IUL Policies | Life insurance offering death benefit and cash value linked to a stock market index, with protections against downturns. |
| Agent Involved | Rodney A. Smith is accused of steering the Buschs into high-risk products for substantial undisclosed commissions. |
| Legal Proceedings | Case ongoing in Western District of North Carolina; Pacific Life’s motion to dismiss under consideration. |
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